By Paul Nicholson
February 9 – Broadcast and match-day revenues have driven another set of improved Manchester United financial results with revenue of £157.9 million for the quarter ending December 31, a £24 million increase on the same quarter in 2015. For the sixth month period Man Utd are up almost £21 million on the comparable 2015 figure, to £278.1 million.
Ed Woodward, Executive Vice Chairman, said: “The robustness of our business model continues to be reflected in our strong quarterly financial results and we remain on track to deliver record revenues for the year.”
The club is predicting revenue for fiscal 2017 to be between £530-540 million with EBITDA to be between £170-180 million.
Third quarter revenues saw broadcasting income up 48% for the quarter to £52.5 million as the new Premier League TV deal kicked in, while matchday revenue was up to £38.6 million, a rise of 27%, due to strong cup runs and Europa League fixtures.
Man Utd have reached the final of the EFL Cup to be played against Southampton later this month, the English season’s first major trophy to be won.
Commercial revenues were slightly up by 1.1% to £66.8 million. The club signed new sponsorships with Mlily and Deezer, and renewed with Concha Y Toro.
One of the strengths of the Man Utd business is its broad revenue base. While many other clubs’ accounts in the Premier League are dominated by TV income often making up as much as 70% of revenue (sometimes more), Man Utd has a wider spread.
Commercial income (sponsorships and licensing) in 2016 accounted for 42.3%, broadcast income for 33.3% and matchday revenue for 24.4%.
The biggest financial issue the club faces is its rising debt which is now at £409.3million – a nasty jump of 27.1%. In their last set of results in November, the debt was closer to £338m. The club blamed the debt issue on the post-Brexit slump in the pound against the dollar. Currently the club says it has no problem servicing the debt, though will doubtless be hoping for a strengthening of the pound.
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